What is the cost of existing common stock

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Reference no: EM131554643

Sun Electric is expected to pay a dividend of $2.58 per share over the next year, and the stock is currently selling for $35 a share.

If dividends are expected to grow at 3.3 percent a year, what is the cost of existing common stock?

For the problem above, if the flotation cost for new common stock is $1.80, what is the cost of new common stock?

Reference no: EM131554643

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